Written by Hitesh VyasMumbai | October 9, 2025 12:03 AM IST 3 min readSecurities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey (PTI Photo)Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey on Tuesday said that the markets regulator has prepared an action plan on quantum readiness for its regulated ecosystem.“…to address post quantum cryptographic issues, Sebi has prepared an action plan as well as capacity building initiatives on quantum readiness of its regulated ecosystem,” Pandey said during his speech at the Global Fintech Fest 2025.Cryptography is the practice of developing and using coded algorithms to protect and obscure transmitted information so that it may only be read by those with the permission and ability to decrypt it. “The traditional cryptography that we do now, with which we generate passwords, whether it is 128 encrypted or whatever, that will break with quantum computing, which means there will not be any security… Crypto-proof passwords are called post-quantum cryptography (PQC), or quantum key distribution (QKD). We will have to prepare for that. And gradually, in all the systems, we will have to look at where the passwords have been used. And then we will have to replace them,” Pandey told reporters on the sidelines.With quantum computing poised to break conventional encryption methods, the need for quantum-resilient cybersecurity has become urgent.In July this year, the Ministry of Electronics and Information Technology (MeitY), the Indian Computer Emergency Response Team (CERT-In), and cybersecurity firm SISA jointly launched a whitepaper titled ‘Transitioning to Quantum Cyber Readiness’.This whitepaper will be a guide for organisations across sectors to begin their quantum safe migration and prepare for quantum readiness.Pandey added that every leap in technology brings its own set of risks. Cybersecurity threats have the potential to create systemic disruptions. A single data breach or operational glitch can have cascading effects across interconnected systems.Story continues below this ad“As market participants increasingly rely on third-party service providers and cloud-based platforms, new vectors of risk emerge — sometimes beyond traditional regulatory perimeters,” he said.Sebi has been taking steps, including regulatory frameworks, continuous monitoring, capacity building, standard operating procedure for classification and handling of cybersecurity incidents. Under the comprehensive cybersecurity and cyber resilience framework for regulated entities, Sebi has prescribed measures to ensure the entities remain equipped with adequate cyber resilience measures and can withstand, respond to, and recover from cyber threats effectively.“But resilience is not a one-time achievement; it is a continuous process – of learning, adapting, and anticipating,” Pandey said.He, however, said that the resilience cannot be built by the regulator alone. It is a shared responsibility – among market infrastructure institutions (MIIs), intermediaries, fintech innovators, and indeed, all of us in this ecosystem.© The Indian Express Pvt LtdTags:SebiSecurities and Exchange Board of India